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The number of corporate bankruptcies in Japan increased to 10,300 in 2025, which is its highest level since 2012.
Bankruptcies Rise Again
A Tokyo Shōkō Research report found that the number of corporate bankruptcies in Japan involving a total liability of ¥10 million or more rose by 2.9% year on year in 2025 to 10,300. This was the second successive year for the total to exceed 10,000. The bankrupt firms included the listed company Alt, an artificial intelligence developer, after accounting irregularities came to light. However, overall liabilities fell by 32% to ¥1.6 trillion, as many of the bankruptcies involved microenterprises with liabilities of less than ¥100 million. It was the first time in four years for overall liabilities to fall below ¥2 trillion.
The number of bankruptcies caused by labor shortages hit a new record, as wages rose and companies struggled to attract staff. The weakening of the yen, with the dollar rising above ¥158 at one point in 2025, and higher import costs meant the number of bankruptcies caused by rising prices increased for the third successive year.
By industry, bankruptcies increased year on year in 7 out of 10 categories, with decreases only in wholesale, finance/insurance, and transportation. The largest number was in the service industry with 3,478. Bankruptcies rose in seven out of nine regions, excluding Hokkaidō and Chūgoku.
Tokyo Shōkō Research says that in 2026, “Causes for concern include rising interest rates following the Bank of Japan’s rate hike, the impact of the Trump tariffs, and fraying ties with China.” It predicts a gradual increase in bankruptcies through March this year, the end of fiscal 2025.
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